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| Members of Korea Development Bank's union protest in front of its headquarters on Yeouido in Seoul, June 9. Yonhap |
By Lee Min-hyung
Planned relocations of state-run lenders here have hit a snag, as growing internal resistance has stalemated the moves even months after the inauguration of President Yoon Suk-yeol.
The Yoon administration expressed its strong will to relocate the headquarters of the Korea Development Bank (KDB) to the nation's southeastern port city of Busan.
But the move has made little progress since Yoon took office in early May. KDB's new Chairman Kang Seog-hoon is also in a dilemma amid escalating pressure from the lender's union, which stepped up its hard-line rhetoric against the relocation plan.
The union reiterated its firm determination to keep protesting until the government drops the plan. It even took about two weeks for Kang to enter his office after having been appointed for the position, as KDB union members blocked his entry into the headquarters in Seoul.
He shared his plan to "hold a special communication committee" to narrow the gap between management and union regarding the relocation plan, but no tangible progress has been made amid the union's unwavering opposition.
The possible relocation of the Industrial Bank of Korea (IBK) to the southeastern city of Daegu is also locked in a stalemate, after Rep. Yun Jae-ok of the ruling People Power Party recently shifted positions within the Nation Assembly. He previously chaired the Nation Assembly's National Policy Committee, but he switched positions to lead the Foreign Affairs and Unification Committee.
The lawmaker proposed a revision act pushing for the IBK's relocation from Seoul to Daegu. As the act has not been approved yet, it remains uncertain who will be able to undertake the same role for the plan.
The Yoon administration is pushing ahead with the drive to relocate major state-run lenders to provincial areas, as part of efforts to achieve balanced financial growth across the nation.
Busan Metropolitan City is continuing efforts to attract more overseas private financial companies. The city government held a joint opening ceremony on Monday after attracting three foreign financial firms including Citibank Korea to the Busan International Finance Center. The city aims to attract more financial firms from Hong Kong and Singapore to enhance its international footing.
But experts expressed woes that excessive political intervention might weaken Korea's overall competitiveness in global finance.
"Scattering financial institutions across the nation is feared to worsen Korea's competitiveness in international finance," Sejong University professor Kim Dae-jong said. "When foreign investors visit Korea, they may have to visit cities all across the country, which does no good in attracting more foreign capital. Most developed countries with their own financial hubs, such as the United States and Singapore, do not adopt such a strategy for the sake of balanced growth across regions."
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